Question

“Unions enhance productivity and wages and reduce firm profitability. The US economy would function better if it were union-free.”

write whether you agree or disagree with the above statements provide an example from the labor market and your understanding and the application of the economic impact of union membership and collective bargaining. Be brief and clear. (150 words minimum)

Answer 1

I think the US economy Would Function Better if There is a Balance between Capitalism and Unionisation

Governments should aim to Strike a Balance between the 2 Extremes of unions

But it is Clear that Recently that Metric has been Skewed a bit off

It has been No Secrets that the Number of New Unions in The United States of America and the Number of Employees joining Unions have been in a Decline for Quite Some Time Now , Even After Countless Reports and Studies that highlight the Importance of Unions and the Constructive Role they play in Ensuring Equitable Wealth Distribution , People are Unwilling to join or start Labor Unions In a recent Peter Hart's Research Associates Poll Report 3 out if every 5 survey Respondents would join a Union if they had a Chance but they are Afraid of Repurcussions such as a Hostile Work Environment and strict Opposition from Anti-Union Employees

Even though Labour Unions Provide Valuable Good to the Society some of which I'm Mentioning Below

Better Wages - It's no secret that Unionised Employees earn significantly higher than non-unionised Employees , Between 2004-2007 Unionised Workers reported an 11.3 percent increase in Wages over Non - Unionised Workers with Similar Job Descriptions ,Thus it's Clear that Unionised Employees have an Advantage here

Unions help productive Workers Earn More -

Unions adopt the Policy of Rewarding Workers for their Efficiency and Productivity and thus have another advantage over Non- Unionised Workers

Unions also provide other Valuable Benefits such as Reduces Gap Between rich and Poor,Ensures Better living Standards ,Better Working Conditions , Protection to Workers among others, reduces concentration of economic Power

From the above Points it is clear that Unionisation benefits the Economy and the Society as a Whole if kept in Balance .Unions have The Capability if Providing Tremendous Value to Society and they can No longer be Sidelined